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- EBRD €20 million loan to UniCredit Bank Mostar
- Funds will finance local small businesses
- Long-term financing to support regional expansion
The EBRD is supporting the development of small businesses in Bosnia and Herzegovina with a loan of up to €20 million to UniCredit Bank d.d. Mostar, a universal bank with a branch network throughout the country.
The bank will offer sub-loans to local micro, small and medium-size enterprises who will benefit from long-term financing and the opportunity to diversify their funding base. New investments will allow the companies to strengthen their competitiveness in the local market and beyond.
Despite their critical importance for the economy of Bosnia and Herzegovina, small business are still often impacted in their growth by limited access to finance. The EBRD funds seek to contribute to a removal of this obstacle.
At the same time, UniCredit Bank Mostar intends to expand its regional presence in Bosnia and Herzegovina where it has a strong track record in growing its lending during all economic cycles.
The loan was signed ahead of the EBRD’s Western Balkans Investment Summit 2020
Since it began operations in Bosnia and Herzegovina in 1996, the EBRD has invested €2.5 billion in 171 projects there. Boosted by the EBRD’s 2019 Annual Meeting in Sarajevo in May, the Bank has registered a new record result for the country, with investments of €315 million in 20 project last year alone.